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Gold / Silver / Copper futures - weekly outlook: April 3 - 7

Published 02/04/2017, 12:02
Updated 02/04/2017, 12:07
© Reuters.  Gold retraces losses after Fed comments
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Investing.com - Gold prices retraced losses on Friday after a Federal Reserve official said the central bank was in no rush to tighten monetary policy this year.

Gold for April delivery settled up 0.19% at $1,247.4 on the Comex division of the New York Mercantile Exchange, having touched lows of $1,246.4 earlier.

Gold moved higher after New York Fed President William Dudley said Friday that it made sense to raise rates at a gradual pace this year.

Expectations of a slower pace of rate increases tend to boost gold, which is denominated in dollars and struggles to compete with yield-bearing assets when borrowing costs rise.

The precious metal ended the quarter with a gain of almost 8.5% boosted by the weaker dollar and growing doubts over whether the Trump administration's economic proposals would boost the U.S. economy and allow the Fed to tighten policy more aggressively.

Elsewhere in precious metals trading, silver was up 0.3% at $18.26 a troy ounce late Friday.

Platinum was down 0.24% at $953.4 a troy ounce, while palladium rose 0.1% to $798.62 a troy ounce.

Meanwhile, copper fell 0.58% to $2.65 a pound following news that a labor dispute at Freeport-McMoRan's Peruvian Cerro Verde mine had ended.

In the week ahead, investors will be looking to Wednesday’s Fed minutes for fresh indications on the timing of the next U.S. rate hike ahead of Friday’s closely watched nonfarm payrolls report.

Investors will also be eyeing a trio of surveys on UK private sector activity amid ongoing concerns over the economic impact of Brexit.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.

Monday, April 3

Financial markets in Shanghai will be closed for a holiday.

Japan is to publish the results of the Tankan surveys of manufacturing and service sector activity.

Australia is to release data on retail sales and building approvals.

The UK is to release survey data on manufacturing activity.

In the U.S., the Institute of Supply Management is to release its manufacturing survey.

Meanwhile, New York Fed President William Dudley, Philadelphia Fed President Patrick Harker and Richmond Fed President Jeffrey Lacker are all set to speak.

Tuesday, April 4

New Zealand is to release private sector data on business confidence.

Financial markets in Shanghai and Hong Kong will be closed for a holiday.

Australia is to report on the trade balance and the Reserve Bank of Australia’s latest interest rate decision is due.

The UK is to release survey data on construction activity.

Canada and the U.S. are both to release trade data, while the U.S. is also to report on factory orders.

Wednesday, April 5

The UK is to release survey data on service sector activity.

The U.S. is to release the ADP nonfarm payroll report and later in the day the ISM is to release its non-manufacturing survey.

The Fed is to publish the minutes of its March meeting, where it hiked rates and stuck to its projection for two more hikes this year.

Thursday, April 6

Germany is to release figures on factory orders.

The European Central Bank is to publish the minutes of its latest meeting.

Canada is to publish data on building permits.

The U.S. is to produce the weekly report on jobless claims.

Friday, April 7

The UK is to release industry data on house price inflation as well as reports on manufacturing production and the trade balance.

Canada is to publish its monthly employment report.

The U.S. is to round up the week with the closely watched report on nonfarm payrolls.

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